British GDP Slows Down Amid Brexit, Auto-Industry Decline

The British economy slowed down in Q3 with the biggest drop in industrial production since 2012 led by a decline in the car manufacturing industry. Key Takeaways The UK economy grew 0.3% in the 3 months to November, the weakest rate in six months. The auto-industry has taken a serious hit amid tightening emissions regulations – Jaguar Land Rover and Ford are to cut thousands of jobs. The pound rose on speculation of a delayed Brexit which later proved false. The Office of National Statistics posted a rate of 0.3% growth I the 3 months to November compared to 0.4% growth in the 3 months to October. However, on a monthly basis the GDP increased by 0.2% in November compared to 0.1% in October. New vehicles emissions tests interrupted factory production of vehicles significantly, which negatively impacted the UK industry a situation mirrored in Germany and internationally. At least 2,000… Read More »

Gold Price Gaining Ground as Chinese Trade Data Fuels Risk Aversion

Recent trade data out of China is once again behind early declines in stocks today. The Benchmark Dow Jones Industrial Average is down nearly one percent in early action. Overnight, China announced that its trade surplus with Washington was the highest in a decade. Further Evidence of a China Slowdown According to an article from cnbc.com, China’s surplus grew 17 percent from a year ago to hit $323.32 billion in 2018. This was reportedly the highest reading since 2006 and the actual figures may be even worse than the data shows because China uses various methods of calculation. Chinese exports to the U.S. reportedly rise by 11.3 percent while imports from the U.S. to China only managed a slight rise of .7 percent. According to businessinsider.com, the value of Chinese imports and exports fell heavily in 2018, adding fresh concerns about the health of the world’s second-largest economy. The article cited China’s General Administration… Read More »

Four Reasons to Buy National Gold Bullion Coins

If you are looking for a strategy to protect your wealth in a global economic collapse or financial crisis we recommend you buy gold bullion coins. The following countries provide excellent National Gold Bullion Coins: United States Gold Bullion Coin : The American Gold Eagle Canada Gold Bullion Coin : Canadian Maple Leaf Australian Gold Bullion Coin : Australian Nugget South Africa Gold Bullion Coin: South African Krugerrand Gold Bullion coins contain one ounce of fine gold. Although there are slight differences between the coins they are all an excellent protection for your wealth in an economic collapse. Here are four advantages of buying National Gold Bullion Coins: 1. They have a low margin above the current gold price compared to other forms of physical gold that you can take physical possession of. 2. The national gold bullion coins listed above are immediately recognized worldwide. You can easily sell any of these gold coins to almost… Read More »

Gold Markets

It should be noted here that the London Bullion Market is sometimes confused with the London Metal Exchange which is quite different. Only gold is traded at the London Bullion Market while other metals, other than gold, are traded at the London Metal Exchange. So gold is considered as a metal by itself in these terms. The price of gold is actually determined twice a day in London. Here a group of bankers get together and 'fix' the price of gold or in other words, decide what the price of gold is going to be at those particular moments when they decide the price. Of course the price then changes by the hour and moves up and down depending on various influences and perceptions of the value of gold. The reason for the fix is more to add stability and as a stable price twice a day for the banks… Read More »

Gold Price

But what does the gold price mean? The value of gold actually does not change much. What does change is the amount of paper or electronic money needed to purchase an amount of gold, most universally measured as US Dollars (USD) per Ounce. The gold price is also measured in 'price per kilogram' and 'price per gram'. For example the jewelry industry usually is concerned with the price of gold in grams whereas investors usually watch the price per ounce. For over one hundred years from 1800 through to 1970, the cost of gold remained fairly stable with a very gradual rise from 19 US dollars an ounce to 38 US dollars an ounce. Then in 1975 there is recorded a jump to 175 US dollars per ounce! This is a massive jump in just a few years. Not only that but in 1980 there was an even more massive… Read More »

Uses of Gold

Gold has a number of unique properties which make it ideal in industry and perhaps contributes to its value thereby. Gold is resistant to corrosion, has excellent electrical conductivity, is ductile (which means it can be drawn out to a thin wire) and malleable (able to be flattened out extremely thin), reflects infra red and has excellent thermal conductivity properties. It is used extensively therefore in a wide range of manufacturing such as in electronic products like computers, telephones, cellular phones and home appliances. Even wheelchairs make use of gold. Gold is used very much in electrical contacts and almost all circuit boards contain a quantity of gold in the form of smaller that the thickness of a hair wires and other components. Golds reflective powers are used successfully in the space industry such as satellites and spacecrafts where it is used for protection against solar radiation. For example, to… Read More »

Gold vs the Dollar Investments

There are a number of reasons for this. Where you see the price of gold changing it is invariably the value of the dollar against the value of gold that is actually changing. Not the value of the gold. The value of gold has not materially changed for the past 50 years or so. You can still purchase the same material goods and services with an ounce of gold as you could 50 years ago. This does not apply to the value of the dollar of course. It takes a lot more dollars these days to buy the same goods you bought 50 years ago. The question, for investment purposes then, is what do you invest in? Dollars or gold? Investing in dollars leaves one open to the manipulative fluctuations resulting in the dramatic variations of value in the dollar and the devaluation caused by the continual printing of more… Read More »

Interest Rate Drop Prompts 23.5% Spike in Mortgage Applications

Mortgage rates have increased significantly thanks to a drop in interest rates last week with a 23.5% increase in applications for the week ending January 4 according to the Mortgage Bankers Association. Key Takeaways Mortgage interest rates dropped from 4.48% to 4.74%, the lowest level since April, allowing homeowners waiting in the wings to apply for mortgages and enter the housing market. The increase in applications is the biggest in four years. Stock market volatility and the ongoing government shutdown could potentially impede the chances of some of the applications in closing. Application volume is still down 9% from this time last year. 10% of real estate agents surveyed by NAR state that the shutdown was impacting their clients The MBA state’s that the seasonally-adjusted index on mortgage applications jumped to 362.7, the largest weekly increase since October 2015 and the highest index reading since last July. The rate for… Read More »

U.S. Mint Bullion Sales Figures for the Month of December

The current state of market supply and demand metrics can be seen by examining recent bullion sales data. The U.S. Mint is one of the largest bullion producers in the world and regularly publishes recent sales data. Sales figures from the mint can provide some insights as how to strong or weak recent demand may be. Investors can also examine recent premium levels in order to try to get a sense of market strength or weakness. This article summarizes U.S. Mint December sales data. You can read our article about November sales data here. American Gold Eagles To call the American Gold Eagle iconic would be an understatement. These gold coins are highly symbolic of the United States and all that it stands for and are recognized as a reliable store of value anywhere in the world. The one-ounce coin remains highly popular among investors, although the coin is available in other weights as… Read More »

Gold Price Ticks Upward as Chinese Inflation Data Misses Expectations

Chinese inflation data came in lower than expected in the wake of the end of three days of trade negotiations between the US and China, negatively impacting the Asian markets and signaling an economic slowdown overall in China. Key Takeaways The PPI rose 0.9% compared to a forecast 1.6% on year in December. The CPI increased by 1.9% on year in December, lower than the 2.1% expected and the 2.2% growth seen annually in November. Yearly CPI from January to December was 2.1%, falling well short of Beijing’s target rate of 3% inflation. The data was released last night at the open of Asian markets which mostly contracted following the report. The Producer Price Index, which rose 0.9%, measures price increases for producers and manufacturers, and hit the lowest rate of growth since September 2019 in December. The 0.9% increase compares poorly to the 1.6% expected growth and the 2.7%… Read More »